10 November 2011
ONE OF MY CLIENT BM LTD WHO WAS HAVING TWO TYPES OF BUSINESS DETALERSHIP BUSINESS OF A MNC. BM LTD INCORPORATED ONE NEW SUBSIDERY I.E. BM PVT LTD AND THE ENTIRE BUSINESS TRANSFERRED TO MB PVT LTD BY FILING A WRIT BEFORE KOLKATA HIGH COURT.
CENVAT CREDIT WHICH WAS LYEING WITH THE MB LTD WAS ALSO TRANSFERRED TO MB PVT LTD.
NOW SERVICE TAX DEPARTMENT HAS DIALLOWED THE CREDIT AVAILED FROM BM LTD AND ISSUED A SHOW CUAUSE NOTICE SAYING THAT CREDIT AVILED MAY PLEASE BE DEPOSITED AND A PENALTY WILL ALSO BE IMPOSED.
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